Baird cuts Tesla stock price target on project focus, SpaceX tie By Investing.com

Investing.com - Baird lowered its price target on Tesla Inc. (NASDAQ:TSLA) to $522 from $538 while maintaining an Outperform rating on the shares. The target sits within a wide analyst range of $125 to $600, reflecting sharp disagreement on the stock's valuation. Tesla currently trades at $387.51 with a market cap of $1.45 trillion.

The firm noted no change in its outlook for the electric vehicle maker. Baird said the first-quarter earnings call was more focused than historical quarterly calls, similar to the fourth-quarter call.

The firm attributed this to CEO Elon Musk's concentration on Tesla's project pipeline and the upcoming SpaceX initial public offering. Baird views Tesla as a core long-term holding and expects the company's current projects to restore growth.

In the near term, Baird said the stock is likely tied to the SpaceX IPO and potential merger speculation.

The price target reduction comes as Baird maintains its positive stance on the automaker's long-term prospects.

In other recent news, Tesla reported first-quarter revenue of $22.4 billion and earnings per share of $0.41, surpassing analysts' expectations of $22.1 billion and $0.35, respectively. The company's automotive gross margin, excluding credits, rose to 19.2%, benefiting from tariff relief and warranty writedowns. Tesla has also announced plans to add 1,000 jobs at its German gigafactory to boost production by about 20% in response to increased demand for the Model Y. Additionally, Tesla has entered into an agreement to acquire an AI hardware company for up to $2 billion in stock, with $1.8 billion contingent on performance milestones.

Analyst firm Mizuho has adjusted its price target for Tesla to $480, citing demand headwinds, while maintaining an Outperform rating. Truist Securities has reiterated a Hold rating with a $400 price target, noting Tesla's transition towards artificial intelligence. Goldman Sachs has maintained a Neutral rating with a $375 price target, highlighting improved margins in Tesla's Auto and Energy segments. These developments reflect Tesla's ongoing efforts to expand production capabilities and integrate advanced technologies into its operations.

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